Max Healthcare Q3 results: PAT drops 17.4% to Rs 289 cr, revenue up 40%

Hospital chain to set up 500 bed hospital in Thane on built-to-suit basis, focus on brownfield expansion

Max Healthcare Institute made a consolidated net profit of Rs 238.80 crore in the third quarter of the financial year 2024-25 (Q3FY25), down 17.4 per cent from Rs 289.34 crore in the same period last year, according to a filing on the Bombay Stock Exchange (BSE).

 

The New Delhi-based hospital chain’s revenue from operations was Rs 1,868.31 crore, up 39.9 per cent from Rs 1,334.97 crore in Q3FY24.

 

Sequentially, the company’s net profit dropped by 15.2 per cent, while revenue grew by 9.4 per cent from Rs 281.81 crore and Rs 1,707.46 crore recorded in Q2FY25, respectively.

 

The company has earlier stated that three of its partner healthcare facilities in New Delhi – Max Balaji Hospital, Max Smart Super Speciality Hospital, and Max Saket Super Speciality Hospital – are not included in consolidated financial statements.

 

If the three facilities are considered, revenue for the whole entity stands at Rs 2,269 crore, and net profit will be Rs 316 crore, according to the company’s investor presentation.

 

The drop in net profit was caused by a one-time cost of Rs 74 crore incurred for charges paid to the Yamuna Expressway Industrial Development Authority (YEIDA) to secure permission for a change in Jaypee Healthcare Ltd's (JHL) shareholding prior to acquisition.  ALSO READ: L&T Q3 results: Net profit rises 14% to Rs 3,359 crore, revenue up 17%

 

The company also announced its decision to sign an agreement to lease with VR Konkan Limited to set up a 500-bed hospital in Maharashtra’s Thane. The hospital is expected to be commissioned in 2028.

 

Speaking to Business Standard, Abhay Soi, chairman and managing director, Max Healthcare, said that the hospital would be set up on a built-to-suit basis. “This would be our third built-to-suit facility after Dwarka and Zirakpur in Mohali,” he added.

 

“An addendum to the previously executed agreement for a built-to-suit hospital in Mohali has been approved by the board, increasing bed capacity from 250 to 400 to meet anticipated demand and enhance operational efficiency,” the company stated.

 

Commenting on the company's expansion plans, Soi said Max is looking at ramping up its brownfield capacity within the next six months.

 

“Our three main brownfield facilities—268 beds at Nanavati, Mumbai, 155 beds in Mohali, and 400 beds in Saket, Delhi—will come on stream in the first quarter of the next financial year,” he added.  ALSO READ: Adani Enterprises Q3 result: Profit drops sharply by 97% to Rs 58 crore

 

The company also saw a 28 per cent year-on-year increase in international patient revenue to Rs 201 crore in Q3FY25, comprising nearly 9 per cent of the hospital’s revenue.

 

Commenting on this, Soi said that Max has been able to see a higher level of engagement in the geographies it already operates in, as well as expanding its presence further.

 

On Thursday, Max Healthcare's shares rose by 2.29 per cent, closing at Rs 1,049.40 apiece on the BSE.